RIM’s Stock Soars as BlackBerry 10 Expectations Build

Research In Motion CEO Thorsten Heins displays features of the Blackberry 10 during a company event in September.

By Ben Dummett

Expectations are building for BlackBerry-maker Research In Motion Ltd. ahead of the launch of its BlackBerry 10 smartphones.

RIM’s stock has advanced in the last seven trading sessions and was up more
than 12% in Toronto earlier Thursday, as a growing number of analysts and
investors bet the Waterloo, Ontario company’s new BB10 devices will entice
consumers and corporate buyers alike.

That could set the stage for a turnaround in RIM’s fortunes, which have sagged in its battle for customers versus Apple Inc. and smartphone makers using Google Inc.'s Android operating system.

RIM’s stock has chalked up an almost 37% gain over the past seven trading
sessions.

But the heightened expectations suggest RIM’s downfall could be that much more severe if the company’s latest effort to remain relevant fails.

RIM is scheduled to introduce its BB10 phones in multiple countries Jan. 30, and start shipping the devices soon after. The launch date is good news because RIM could see sales from the devices sooner than expected. Many analysts’ earnings estimates for RIM likely reflect a March launch date, National Bank Financial said in a note Thursday.

The bullish commentary comes after Jefferies & Co. said earlier this week its survey of telecom operators revealed “a much more positive view of BB10 than we expected.”

RIM, long criticized for its ineffectual marketing efforts, has been doing a better job of creating buzz around the upcoming BB10 launch. It got the ball rolling at the end of October when Chief Executive Thorsten Heins said the company had delivered its next line of smartphones to more than 50 carriers to test for certification.

Since then, RIM executives have been giving interviews talking about the upcoming launch and demonstrating the new phone’s features.

Still, there’s plenty to remind investors of the headwinds RIM is facing. The BB10 launch comes after the important Christmas shopping season. And earlier
this week, the National Transportation Safety Board, a U.S. government agency, said it’s looking to switch from RIM’s BlackBerrrys to Apple’s iPhones because BlackBerrys “have been failing both at inopportune times and at an unacceptable rate.”

In response, RIM said “government organizations globally have trusted the
reliability and security of BlackBerry for over a decade. They can continue to
do so.”

In the third quarter, RIM continued to lose market share, according to
research firm Gartner Inc.